After the Central Bank announced an interest rate increase, banks raised their loan interest rates for personal, mortgage, and auto loans. As a result, those planning to borrow will be subject to the new interest rates.
Banks Raised Loan Rates
Following the Central Bank’s rate hike decision, banks adjusted their current interest rates. Due to the pandemic and other economic factors, this change will negatively affect people who need credit. Banks increased rates across personal, mortgage, and vehicle loans.
The newly announced rates are as follows:
- Ziraat Bank: personal loan 1.47%, auto loan 1.45%, mortgage 1.35%
- Halkbank: personal loan 1.47%, auto loan 1.45%, mortgage 1.15%
- Vakıfbank: personal loan 1.40%, mortgage 1.25%, auto loan 1.43%
- İş Bankası: personal loan 1.40%, auto loan 1.50%, mortgage 1.35%
- Akbank: instant loan 1.74%, personal loan 1.65%, auto loan 1.52%, mortgage 1.25%
- Garanti Bank: personal loan 1.49%, mortgage 1.49%, auto loan 1.64%
- Türkiye Ekonomi Bankası: personal loan 1.25%, auto loan 1.35%, mortgage 1.37%
Other banks are expected to announce their revised rates within a few days.
How to Take Out a Loan from Banks
Borrowing from banks is commonly chosen by people who lack cash to meet urgent needs or to purchase a home or vehicle. Banks offer loans according to the interest rates they set, but the repaid amount increases with the applied interest. In essence, interest is a charge the bank applies both to cover operating costs and to provide security. Interest rates are determined by the Central Bank’s decisions and each bank’s policies.
Banks cannot set rates below certain minimum thresholds independent of market conditions, so applicants for personal, auto, or mortgage loans must accept the prevailing terms. Credit score is a key factor when applying: it reflects prior banking activity, timely loan repayments, and ongoing accounts. A higher credit score makes approval easier. Lenders also evaluate the applicant’s monthly income to ensure loan repayment capacity. Meeting these requirements increases the likelihood of loan approval.
Which Bank Offers the Cheapest Rates?
The lowest rates are largely determined by the Central Bank’s benchmark and market conditions, so one bank cannot drastically undercut others without risking losses. As a result, rates tend to be similar across banks. Still, comparing offers is worthwhile: even a small difference in the interest rate can significantly change the total repayment. For example, the difference between 1.49% and 1.50% can affect overall costs. Therefore, follow current rates closely and compare banks to choose the most favorable offer before borrowing.